Airlines

July 10, 1997

- The European Union will tell the United States it is unhappy with U.S. enforcement of an aircraft-subsidies accord at a meeting this week that is colored by Boeing Co.'s planned acquisition of McDonnell Douglas Corp.

Europe's attack on U.S. trade practices comes as signs point to the possibility of an EU attempt to block Seattle-based Boeing's purchase of McDonnell Douglas, Bloomberg News reported.

Clinton administration officials said the EU is using the Boeing case to try to force the United States to re-negotiate the 1992 treaty limiting the aid that governments can provide for new aircraft development. They note that Airbus Industries' plan to develop a 600-seat plane requires government aid to cover $9 billion to $12 billion in development costs.

AUTO

- Fort Lauderdale-based AutoNation USA said it has signed an agreement with Boston-based Cross Country Motor Club to provide roadside assistance and trip routing services for consumers who purchase cars from AutoNation USA.

The company also said that AutoNation USA customers will receive discounts on a wide range of goods and services offered by AutoNation USA divisions.

BOAT

- Detroit Diesel agreed to buy Outboard Marine, North America's largest boat maker, for about $500 million including debt, moving Detroit Diesel into the boat business and expanding its marine engine line to include Evinrude outboard motors.

Detroit Diesel, a maker of diesel engines, headed by former race car driver Roger Penske, said it will pay $16 a share for all of Waukegan, Ill.-based Outboard Marine's 20.2 million outstanding shares and assume $180 million in debt.

Outboard Marine, which makes Chris-Craft boats, is the second-largest maker of outboard motors.

COMMUNICATIONS

- American Radio Systems Corp. said its Boca Raton-based American Tower Systems unit agreed to buy Micronet for $70.25 million to expand in the United States.

Jamison, Pa.-based Micronet is an antenna site provider in the Mid-Atlantic with 127 towers in service and others under development. Closely held Micronet also owns 20 towers in Los Angeles and San Francisco and 35 towers in Texas.

After the acquisition, American Tower will own or manage more than 600 tower sites nationwide.

FOOD

- McDonald's said it will decentralize its U.S. operations into five geographic divisions in an effort to move decision-making and accountability closer to the restaurant level.

McDonald's also said that Edward Rensi, who has been president and chief executive officer of McDonald's U.S.A., is retiring. The company cited personal family commitments.

Jack Greenberg, chairman of McDonald's U.S.A., will assume the additional title of chief executive officer of its U.S. business.

HEALTH CARE

- International Magnetic Imaging of Boca Raton said it has signed a $2.7 million agreement with FPA Medical Management to provide MRI and other diagnostic services to more than 100,000 FPA Florida patients.

LEGAL

- Federated Department Stores is under investigation by the New York attorney general for illegally collecting credit-card debts from bankrupt customers, the attorney general's office said.

The investigation _ which involves several other retail chains _ was started last month after Sears, Roebuck & Co. agreed to pay as much as $265 million to settle similar charges and reimburse its customers.

Customers in bankruptcy may agree to pay back their debts though the arrangement _ called a reaffirmation agreement _ which must be approved by a judge. The investigation of Federated, which operates the Macy's and Bloomingdale's chains, focuses on whether the company had court approval.

A third to a half of the cases came from Broadway Stores Inc., a chain Federated bought in 1995 and didn't involve actions taken by Federated, said spokeswoman Carol Sanger.

AIRLINES

- Laker Airways has sued British Airways Plc for allegedly monopolizing Miami-London air traffic, prompting Florida's attorney general to ask the two companies to enter mediation.

Florida Attorney General Bob Butterworth set a deadline of Wednesday for BA to respond to Laker's allegations, which are similar to criticism BA has received from its proposed alliance with AMR Corp.'s American Airlines unit.

A BA spokesman declined comment, saying the company hasn't seen the attorney general's letter. Laker Airways said it filed its lawsuit on June 19 in U.S. District Court in Fort Lauderdale, where it is based.

TECHNOLOGY

- 3Com and Siemens AG announced a broad alliance aimed at developing products to integrate data and voice networks.

The alliance will include a significant expansion of the 4-year-old reselling agreement the two companies already have in place, officials said.

It also will call on both companies to collaborate on products to handle voice and data traffic. The first products from the expanded agreement could be ready in 12 to 18 months.

TELECOM

- The Federal Communications Commission approved a plan to auction a chunk of the nation's airwaves currently being used to broadcast TV channels 60-69.

The plan will set aside part of that spectrum for public safety uses, such as police radio and ambulance communications. It is the biggest allocation of spectrum to public safety groups ever.

These groups have been lobbying Capitol Hill and the FCC for additional spectrum so they can begin to use high-tech devices without concern about interference from commercial users. Giving them the new spectrum will also allow local, state, and federal public safety agencies to talk to each other on the same radios, improving communications.